Uzbekistan is implementing a comprehensive reform of its insolvency framework aimed at improving efficiency of insolvency procedures, expanding pre-trial rehabilitation mechanisms and strengthening institutional governance in the sector.

The reform introduces major structural, procedural and digital changes designed to modernize insolvency administration and improve recovery mechanisms for financially distressed businesses and individuals.

Strategic goals of the reform

The new framework establishes several key targets for development of the insolvency system, including:

• improving state governance and legal regulation in the insolvency sphere;

• increasing the share of rehabilitation measures implemented without court involvement through expansion of pre-trial rehabilitation mechanisms;

• reducing the average duration of insolvency procedures by at least 30% through simplification and digitalization;

• doubling the number of insolvency administrators through modernization of the regulatory and qualification system.

The reform signals a shift toward a more rehabilitation-oriented and technology-driven insolvency model.

Creation of Insolvency Agency

A new Insolvency Agency is being established under the Ministry of Justice as the central authority responsible for insolvency regulation and policy implementation.

Its powers include:

• implementation of state policy in the insolvency sector;

• regulatory oversight and coordination of insolvency procedures;

• digitalization and simplification of insolvency processes;

• support for financial rehabilitation of insolvent businesses and individuals;

• maintaining insolvency statistics and analytics;

• certification, supervision and monitoring of insolvency administrators.

The Agency is also tasked with improving coordination among courts, government authorities and creditors.

Creation of Chamber of Insolvency Administrators

The reform transforms the existing association of insolvency administrators into the Chamber of Insolvency Administrators of Uzbekistan, operating on the basis of mandatory membership for all insolvency administrators.

The Chamber will function as a professional self-governing body and will be responsible for:

• professional ethics standards;

• qualification and training programs;

• monitoring professional performance;

• disciplinary measures and membership suspension mechanisms;

• annual rating and evaluation systems.

Starting from 1 July 2026, the Chamber and accredited educational institutions will be authorized to train insolvency administrators.

Professionalization and accountability mechanisms

The reform introduces enhanced qualification and performance requirements for insolvency administrators, including:

• mandatory retraining programs;

• periodic qualification reviews;

• KPI-based remuneration structures;

• monitoring and rating systems;

• disciplinary liability mechanisms.

A notable innovation is the introduction of electronic and randomized selection mechanisms for appointment of insolvency administrators, aimed at reducing human intervention and increasing transparency.

Courts may also reduce remuneration where administrators improperly perform their duties.

Expansion of pre-trial rehabilitation tools

The reform places significant emphasis on pre-trial rehabilitation (sanation) as an alternative to formal court insolvency procedures.

From 1 September 2026, creditors and banks may:

• suspend accrual or payment of interest under rehabilitation agreements;

• restructure debt obligations;

• apply additional financial rehabilitation measures.

The framework also expands opportunities for:

• tax deferrals and installment arrangements;

• restructuring of tax obligations;

• financial support instruments for SMEs undergoing rehabilitation procedures.

Applications for tax deferrals will be processed electronically with shortened review periods.

Launch of Unified Electronic Insolvency Platform

One of the most significant elements of the reform is the creation of a Unified Electronic Insolvency Platform, scheduled to launch from 1 December 2026.

The platform will support:

• online monitoring of insolvency procedures;

• electronic registries of debtors and insolvency cases;

• digital creditor meetings and voting;

• publication of rehabilitation plans and administrator reports;

• integration with court and government information systems.

The platform is intended to become the official source for mandatory insolvency disclosures.

Implications

The reform represents a substantial modernization of Uzbekistan’s insolvency framework through:

• stronger institutional oversight;

• greater emphasis on rehabilitation over liquidation;

• professionalization of insolvency administrators;

• expanded digitalization and transparency;

• improved creditor coordination and procedural efficiency.

For businesses, creditors, banks and investors, the changes are expected to improve predictability and efficiency of insolvency and restructuring processes.

The decree entered into force on 7 May 2026.

Uzbekistan is reforming the financing and management of the culture and arts sector by introducing a results-oriented funding model, expanding public-private partnerships (PPP) and strengthening private sector participation.

The reform reflects a broader shift toward commercialization, efficiency and digitalization of the cultural ecosystem.

Transition to performance-based financing

A key feature of the reform is the introduction of a results-based financing system.

Starting from 1 July 2026, performance management will be strengthened through:

• mandatory annual KPIs for heads of cultural departments;
• evaluation-based incentives or reassessment of positions;
• ranking of cultural institutions based on performance indicators.

Priority is given to metrics such as:

• public engagement in cultural activities;
• preservation and promotion of national cultural values.

Centralization of funding flows

From 1 January 2027, a new financing model will be introduced:

• funding of cultural institutions will be centralized through the republican budget;
• allocations will be administered through the Ministry of Culture and its territorial bodies.

This is intended to improve efficiency and transparency in budget utilization.

Expansion of PPP and private sector participation

The reform significantly expands the role of private investors:

• a simplified PPP regime is introduced (on an experimental basis until 1 January 2030) for projects up to USD 1 million;
• cultural facilities may be transferred to private partners under PPP structures;
• private partners will operate under performance-based KPIs.

In addition, pilot cultural cluster projects (“Madaniyat mehmonxonasi”) will be implemented across regions starting from 1 July 2026.

New grant and incentive mechanisms

From 1 August 2026, a structured grant system will be introduced to support:

• theatre, music, dance, cinema and animation;
• cultural education and creative industries;
• startups and creative projects;
• AI, innovation and digitalization in culture.

A dedicated digital platform will be used to manage and publish grant-supported projects.

Support measures for private sector

Additional incentives include:

• subsidies and compensation mechanisms for financing cultural projects;
• partial reimbursement of interest expenses on loans;
• coverage of up to 50% of utility costs for certain private cultural initiatives (up to 5 years);
• allocation of land plots through online auctions for cultural projects.

These measures are aimed at lowering entry barriers for private investors.

Transformation of cultural infrastructure

The reform also introduces:

• restructuring and optimization of underperforming cultural centers;
• transfer of cultural institutions to local government (hokimiyat) management;
• development of centers promoting intangible cultural heritage, crafts and creative industries.

Education and talent development

Changes will also affect the education system:

• modernization of specialized schools and colleges in arts and culture;
• introduction of integrated educational formats (e.g., “2+2” models);
• alignment of education programs with sector needs.

Digitalization and AI integration

The reform places emphasis on digital transformation:

• creation of databases of national cultural content;
• use of AI platforms for preservation and promotion of culture;
• implementation of digital management systems within the sector.

Implications

The reform signals a structural shift:

• culture becomes investment-driven, not only state-funded;
• private sector gains access to new PPP and grant mechanisms;
• governance becomes performance-based;
• digitalization and AI become integral to cultural policy.

This approach is expected to improve efficiency, expand access to cultural services and create new opportunities for creative industries.

The document entered into force on 23 April 2026.

Uzbekistan has adopted a new Law on Limited Liability Companies, introducing a significantly updated corporate governance framework and strengthening investor protection mechanisms.

The reform modernizes the regulation of LLCs, aligning key elements with international corporate governance standards and addressing long-standing gaps in practice.

Key Legal Developments

Enhanced corporate governance framework

The Law formalizes the role of the supervisory board in LLCs, including its powers, composition and procedures for appointment. It also explicitly allows for remote decision-making, including absentee voting, reflecting modern governance practices.

Introduction of fiduciary duties

For the first time at a legislative level, fiduciary obligations are clearly defined for members of the supervisory board and executive bodies. This introduces a higher standard of conduct, including duties of care and loyalty, and increases potential liability exposure for management.

Minority shareholder protections

The Law strengthens the position of minority participants by:

• enabling the establishment of internal committees;
• allowing the initiation of independent audits;
• enhancing oversight over company management.

These mechanisms are expected to improve transparency and internal accountability.

Regulation of affiliated party transactions

Clearer rules are introduced for affiliated persons and related-party transactions, addressing a key risk area in corporate structures and improving safeguards against conflicts of interest.

Enforcement of capital contribution obligations

Participants who fail to fully contribute their share in the charter capital may now be excluded through court proceedings, reinforcing capital discipline and protecting other participants.

Optional centralization of capital records

LLCs are permitted to transfer the accounting of charter capital to the Central Securities Depository on a contractual basis is an option that may improve transparency and reliability of ownership records.

Practical Implications for Businesses

The new Law will require companies and investors to reassess existing structures and documentation:

• Charters (constitutional documents) should be reviewed and potentially updated;
• Governance models (including the introduction of a supervisory board) should be reconsidered;
• Shareholder and joint venture agreements may need alignment with new rules;
• Internal policies on conflicts of interest and related-party transactions should be strengthened;
• Businesses should monitor capital contribution compliance more closely.

Overall, the reform increases both compliance expectations and governance accountability.

Entry into Force

The Law will enter into force on 22 July 2026.

This reform represents a significant step toward improving corporate governance and investor confidence in Uzbekistan. While it introduces additional compliance considerations, it also provides clearer rules and stronger protections for market participants.